Canadian Seller with USD Currency

My Shopify store's currency is in USD, and I am Canadian. Based on the forum people recommended opening a US Savings account with Tangerine to capture their Shopify payments. So i setup an account, however whenever Shopify tries to pay me it fails, it says:

"Your payout couldn’t be withdrawn because the bank account details you entered were incorrect. You need to enter bank account details for a valid checking account. Your payouts will be on hold until you resolve this issue."

I'm not sure what I'm doing wrong. I only have a US Savings account with Tangerine, and i went with them because every other bank has fees for having a US account. Can anyone else relate to this?

I just want to be able to capture my USD payments without fees but it doesn't seem the Tangerine USD Savings account is a viable option anymore.

So sorry to hear that you're having issues with those payouts! The problem there is likely that it's a savings account - in order to pay out, Shopify requires a checking account to be entered for your banking information. A savings, flex currency or speciality account will not work as your chosen bank account. In order to get those payouts working, you'll want to set up a USD checking account with your financial institution; once done, we'll be able to get those payouts to you!

I have previous experience in Canadian banking that I hope to shed some light on how to set up your USD Shopify Payments account with a bank account.

Shopify Payments will send the USD payment to your bank account through the same means as a CAD payment to your chequing account. The most likely reason a transfer is failing with a savings account is that some savings accounts do not support the ability to accept both pre-authorized credit (deposit) and pre-authorized debit (withdrawal) payments. PAD payments are required for Shopify Payments is to pull money from the deposit account in the event that you refund more than you sell in a given day resulting in a negative Shopify Payments payout amount.

For this reason, all Canadian Shopify Payments payouts in USD must go to a USD chequing account at a bank based in Canada, and all Canadian Shopify Payments in CAD must go to a CAD chequing account at a bank based in Canada.

Regarding Tangerine, it may be worth contacting them to see if they need to enable the ability for PAD/ PAC payments on that account similar to a chequing account, or if a USD-chequing account is required - the same would go for any other bank where payouts have failed.

Shopify Payments payouts are a domestic payment issued by a bank in Canada, regardless of whether the currency used is USD or CAD.

I hope this clears up any confusion and helps you sort out your banking dilemma.

I'm also looking to sell products in USD, but am living in Canada. I reached out to an employee at RBC, looking to set up a USD account for accepting payments. However, they would only offer me a US business account, due to requirements around reporting GST/PST. The problem is that this results in a charge of $1.12 per transaction.

If i just set up a personal US checking account for my shopify business, would I run into any legal issues when tax season rolls around?

We are also looking to switch to Shopify Payments, and have two stores; one in Canadian Dollars, and one in US Dollars for our southern neighbours.

I have a few questions.

1) We are currently getting overnight settlement for CAD and 2-day settlement with USD with Chase Paymentech. Does Shopify Payments settle in one to two days?

2) Do we get charged the International fee rate for Americans Customer, if we process there transactions in US Dollars.

3) I'm curious about this Shopify Capital, although the factoring charge is rather high. Assuming everybody here is low risk and have some volume of sales, how long did it take to get the invite (days, weeks, months, never).

1) When using Shopify Payments in Canada you will receive deposits to your Canadian-based CAD or USD bank account 3 days following the sale. A detailed explanation of the Shopify Payments payout schedule can be found here.

2) The rates you are charged are determined by the origin of the customer's card, rather than the currency. If your customer pays with a card based at a bank outside of Canada, you will be charged the international rate to process the payment as this counts as in international transaction. Conversely, if a Canadian customer pays with a USD credit card from a Canadian bank, the domestic rate will apply.

3) Currently, Shopify Capital is being offered to shops that meet a number of criteria including, but not limited to, current sales volume, chargeback rate, and whether or not you're using Shopify Payments. I didn't see your store URL listed on your forum account, but if you either add it here in a reply or contact our Support Team here we can put you on the list of interested stores for future Shopify Capital consideration.

We don't have documentation that specifically mentions the TD Borderless free account, but as long as the bank account is a USD account and is in Canada where you are located, as that one seems to be, then it will work with your Shopify account just fine, and you will be able to sell in USD!

Once you have the bank account set up and is good to go, you can set up your payment gateway in USD with those bank account details without any issues.

Just to clarify. So I have a US chequing account with TD Bank. If my store is accepting USD and my US customer payouts go to this Canada based US account, would that also mean my Canadian customer payouts will go to the USD chequing account as well? Currently I don't believe I can connect to two bank accounts to one Shopify store.

You are absolutely correct. You can only connect one bank account per payment gateway, and if your pricing is set to USD and you charge in USD, regardless of the local currency your customer will pay with, you will receive the funds in USD in your USD bank account.